Corel down after swinging to Q3 loss
Corel Corp. (Nasdaq: CREL) shares are down in after-hours trading after the Canadian software maker announced it swung to a third-quarter loss, after a one-time charge associated with its acquisition of InterVideo Inc. weighed down earnings.
Revenue for the three months ended Aug. 31 totaled $60.4 million, below analyst estimates of $61.2 million but up 46% from $41.3 million a year earlier. Corel posted a net loss of $6.8 million, or $0.27 per share, below Wall Street projections of $0.30 per share and compared with net income of $5.5 million, or $0.22 per share, in the year-ago quarter.
“Corel delivered another solid financial quarter, driven by our ability to successfully identify, acquire and integrate complementary companies and products,” CEO David Dobson said in a statement. “We were especially pleased with the performance of our Graphics and Productivity products where we experienced double digit year-over-year growth for CorelDraw Graphics Suite, WinZip, Painter, Designer and iGrafx. These results demonstrate the strong foundation that we derive from our diverse revenue mix across product categories, distribution channels and geographies.”
For the fourth quarter ending Nov. 30, Corel said it expects revenue in the range of $66 million to $70 million, compared with $47.4 million during the same period of 2006. The firm expects income in the range of $3 million to $5 million and earning between $0.12 and $0.19 per share, below income of $9.4 million, or $0.38 per share, during fourth-quarter 2006. Analysts expect earnings of $0.30 per share and $61.2 million in revenue for the fourth quarter.
For the fiscal year ending Nov. 30, Corel said it expects revenue in the range of $244 million to $248 million, from $177.2 million in fiscal 2006. The firm expects a net loss in the range of $13.3 million to $11.3 million and an earnings loss in the range of $0.51 to $0.44 per share, compared with net income of $9.3 million, or $0.66 per share, in fiscal 2006. Analysts expect earnings of $1.72 per share on $273.5 million in revenue.
In after-hours trading, CREL shares are down 4.65%, or $0.61, at $12.50. Over the last 52 weeks, shares have ranged from $11.90 to $14.51.
